| Copyright (c) 2008 Paul Hata | | | | member of the General Agreement on Tariffs and |
| With a GDP growth rate of 9.4% in 2006-07, India's | | | | Trade (GATT). Needless to say, as India's economy |
| economy is among the fastest growing in the | | | | starts to relax its laws on foreign investment, many |
| world.India's GDP is over US$1 trillion with a per capita | | | | interested parties who see the light at the end of the |
| income of US$977 while its per capita (Purchasing | | | | tunnel began funneling in their funds. |
| Power Parity) is US$2700. | | | | With China, we know that manpower is the main pulling |
| With the new open door policy, investment in India has | | | | point. The same goes for India. India is one of the |
| become a popular choice, giving China a fair fight for | | | | countries in the world that provided a cost-effective |
| the share of global investments. India, however, is less | | | | labor force and an abundance or raw material, mostly |
| aggressive and a more conservative country | | | | textile related. India's textile industry is a whopping $36 |
| compared to many other developing countries in Asia | | | | billion dollar industry, a huge lion share for a developing |
| particularly China. | | | | country. Investment in India's textile industry is a sound |
| Before 1991, India's government had in place red tapes | | | | investment deal as it contributes up to be about 5% of |
| and taxes that discouraged outside interference in their | | | | its GDP! |
| economy and growth. Fearing for the local industries, | | | | India's labor-intensive market is highly-trained and |
| the Indian government protected its weak economy by | | | | attracts many foreign investments. Granted, many |
| putting in place a big tax percentage on imported | | | | low-income groups of Indians are home-trained in it, as |
| materials and discouraging attempts by foreign | | | | an India investor, it is best to take note of this fact. |
| investors when they showed an interest in dabbling in | | | | Every country has its own expertise and skills. India is |
| promising companies in India. If they were to grow, India | | | | a country with a healthy number of people capable of |
| wanted it to be from their own effort and not from the | | | | ruling the textile industry in Asia...the only other Asian |
| fact that anyone helped them to achieve the success. | | | | country running alongside it in the textile industry and |
| Therefore, investment in India was difficult before 1991. | | | | fighting for the same slice of the market is China. |
| But the country is completely different today because | | | | While both countries fight for the lion share of the |
| it plays a big role in general meetings all around the | | | | industry, the fierce competition between China and |
| world that dealt with world economy via the World | | | | India will only benefit foreign investors in India's textile |
| Trade Organization. India is an active and founding | | | | industry. |